When you want to avoid the pitfalls of making risky investments, choosing to invest in a CD is a great option. CDs have historically offered consumers solid rates of return. A CD makes a wise investment for several reasons. First, you do not have to worry about the value of your money suddenly dipping like it could if you owned stock options.
You also can earn a consistent rate of return every year with a CD. When you own stocks, the rate of return may differ every year. With a CD, that is not the case. You can earn consistent certificate of deposit rates.
1. Meet with managers from different banks.
Some people feel restricted to starting a CD with the bank that they currently use for maintaining a checking and savings accounts. You should not feel locked into using any particular bank when you are going to open up a new CD. Meet with the managers of different banks in your area to discuss the options that you have.
Some banks may offer a CD option that has a higher rate of return in comparison with CD options from other banks. Make sure you speak with managers from multiple banks so that you can find the best option for you.
2. Consider buying a CD online.
Online banks frequently hold promotions in order to increase the number of patrons that they have. One promotion offered is that you can buy a CD online and earn a higher rate of return as a result. Try to look for FDIC-insured online banks that offer CD promotions. You can usually find these promotions and earn an interest rate of five to six percent.
3. Look for online reviews.
You can read through online reviews to also get an idea of the best CD rates out there. Banking comparison websites usually feature hundreds of consumer reviews that can help you make the right choice if you are thinking about opening up a CD online. These reviews can also help you gain a better understanding of the customer service that a bank offers for its customers. It is always a good idea to check out what other people have said about a bank before you decide to open up an account with it.
4. Do check with your home bank.
Home banks may offer you the best CD interest rates because they want to keep your business. While you should always shop around for CD interest rates, you also should not immediately dismiss the idea of opening a CD account with your home bank. Your home bank may even go out of its way to beat the interest rates offered by competing institutions.
Following these tips will help you find the highest CD rates and earn more for your money. Keep researching the best CD rates, and you may find a great investment that provides you with additional income for the years to come.